HomeMy WebLinkAboutResolution - 2010-R0366 - Unit Price Contract W_Allen Butler Construction Company For Airport Dr. Concrete - 08_12_2010Resolution No. 2010-RO366
August 12, 2010
Item No. 5.23
RESOLUTION
IBE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock, an Amendment to Unit Price Contract
No. 8403, by and between the City of Lubbock and Allen Butler Construction Company,
Inc. for installed concrete at the City's airport drive, and all related documents. Said
Amendment is attached hereto and incorporated in this Resolution as if fully set forth
herein and shall be included in the minutes of the Council.
Passed by the City Council on August 12, 2010
ATTEST:
Rebe ca Garza, City Secretary
APPROVED AS TO CONTENT:
1 'Y F
2��,
Jaqfes Loomis, Assistant City Manager
APPROVED AS TO FORM:
Attorney
Res -Amend Contract.ABCI 7.19.10
TOM MARTIN, MAYOR
Resolution No. 2010-R0366
AMENDMENT TO CONTRACT
This Amendment to Contract (the "Amendment") is entered into on this, the 12thday of
August, 2010, by and between ALLEN BUTLER CONSTRUCTION COMPANY, INC.
("ABCI") and the CITY OF LUBBOCK (hereinafter referred to as "City"), together as parties to that
certain Unit Price Contract (Contract No. 8403, BID 08-713-DD) originally dated May 13, 2008
(hereinafter referred to as the "Contract"). Each of ABCI and the City may also be referred to
individually as a "Party" or collectively as the "Parties."
WHEREAS, ABCI, pursuant to the terms of the Contract, provided and installed concrete
for City at the City's airport drive; and
WHEREAS, the Parties have inspected the concrete installed by ABCI, and have
mutually agreed that certain portions of said concrete are in need of repair or replacement; and
WHEREAS, the Parties have negotiated and agreed to amend the Contract so as to
provide certain protection for the City in the event of future failure or other degradation of the
concrete originally installed and/or replaced under the Contract; and
WHEREAS, the Parties desire that all other terms and conditions of the underlying
Contract, except as may be modified hereby, shall remain unchanged, and further that the terms
and conditions of this Amendment shall survive the termination and/or expiration of the Contract.
THEREFORE, the Parties, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, do hereby amend the Contract to include the
following terms and conditions:
On the date of this Amendment, ABCI shall provide to City an irrevocable letter of
credit (the "Letter of Credit"), in the total amount of FOUR HUNDRED SIX
THOUSAND AND NO/100 DOLLARS ($406,000.00), substantially in the form of
the letter of credit attached hereto as Attachment "A" and incorporated herein by
reference for all purposes. City, as the sole beneficiary under the Letter of
Credit, shall be authorized to make unconditional draws against said Letter of
Credit at such time that the City, in its sole discretion may direct, and in such
amount that funds are required to pay, for replacement or repairs to any of the
concrete originally installed and/or replaced under the Contract, without offset,
credit, claim, or demand against said draw of any kind.
2. ABCI shall keep the Letter of Credit in effect and fully enforceable for a period of
ten (10) years from the date of this Amendment; it being understood and agreed,
however, that ABCI may satisfy the requirements of this Amendment either by
extending the original Letter of Credit for successive two (2) year terms (for a
total of 10 years), or by providing City with one or more replacement letters of
credit in substantially similar terms and conditions to the first, and in an amount
equal to any amount remaining on the letter of credit originally provided pursuant
to this Amendment.
ABCI shall furnish to City, prior to the fifteenth (15th) day prior to the expiration
date of the Letter of Credit or any extension or replacement thereof or any of
them, evidence satisfactory to City of the extension of the Letter of Credit in
accordance with Section 2 hereinabove.
4. If during the ten (10) year period following the date of this Amendment the Letter
of Credit or extension or replacement thereof is deemed, for any reason, expired,
invalid, illegal, unenforceable, or otherwise ineffective for draws against it by the
City, ABCI agrees to provide City with another valid irrevocable letter of credit
Amendment to Contract — Allen Butler Construction, Inc. Page 1 of 2
from an institution of the City's choice, in substantially similar terms and
conditions to the first, and in an amount equal to any amount remaining on the
letter of credit originally provided pursuant to this Amendment.
The undersigned Parties agree that the Contract, its exhibits, attachments, and
schedules, if any, shall be incorporated herein for all purposes as though fully restated, and shall
otherwise remain in full force and effect according to the terms expressed therein. The Parties
further agree that the terms and conditions of this Amendment shall survive the expiration and/or
termination of the Contract.
EXECUTED this 12th day of August , 2010.
CITY OF LUBBOCK
BY: C
TOM MARTIN, Mayor
ATTEST:
ebe a Garza, City Secretary
AP OVED AS TO CO ENT:
( Ja es Loomis, Assistant City anager
ALLEN BUTLER CONSTRUCTION, INC.
BY:
ALLEN B TLER, President
ATTEST:
Name:
Title: mac. —
APPROVED AS TO CONTENT:
Name:
Title:
APPROVED AS TO FORM:
Name:
Title:
Amendment to Contract — Allen Butler Construction, Inc. Page 2 of 2
Resolution No. 2010-RO366 ATTACHMENT "A"
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Member FDIC TEXAS
July 1, 2010
The City of Lubbock
1625 13th Street
Lubbock, Texas 79401
Attention: Mitchell Satterwhite
Dear Mr. Satterwhite:
MAIN OFFICE:
5219 City Bank Parkway
P.O. Box 5060
Lubbock, Texas 79408-5060
Phone: 806-792-7101
800-687-2265
www.citybankonline.com
At the request of Allen Butler Construction, Inc., we have established in your
favor the enclosed Irrevocable Standby Letter of Credit #718, in the amount of
$406,000.00.
Please examine this instrument carefully. If you are unable to comply with the
terms and conditions, please communicate wit the applicant to arrange for an
amendment.
All drawings under this credit must be accompanied by the original Letter of
Credit for endorsement.
If we can be of further assistance, please do not hesitate to call us at 806-792-
7101.
Sincerely,
City Bank
By. Y
David Jones, Exec ive Vice President
Enclosure
cc: Allen Butler Construction, Inc.
24 S. Lakeshore Drive
Ransom Canyon, Texas 79366-2403
TRUSTSERVICFS . WUNI;SS,FINANCLUSERWOFS . PFRS02VALT+INAh'CIALSERVIIiP.S ONLINEIVANKING - LOANS - MORTGAGE
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Member FDIC TEXAS
IRREVOCABLE LETTER OF CREDIT #718
Date:
July 1, 2010
Beneficiary:
The City of Lubbock
1625 13th Street
Lubbock, Texas 79401
Attention: Mitchell Satterwhite
Applicant:
Allen Butler Construction, Inc.
24 S. Lakeshore Drive
Ransom Canyon, Texas 79366-2403
Gentlemen:
MAIN OFFICE:
5219 City Bank Parkway
P.O. Box 5060
Lubbock, Texas 79408-5060
Phone: 806-792-7101
800-687-2265
www.citybankonline.com
We hereby issue our Irrevocable Standby Letter of Credit #718 in favor of The
City of Lubbock. This Letter of Credit is effective up to the aggregate amount of
Four Hundred Thousand and No/100 Dollars ($406,000.00) available by draft(s)
drawn on Issuer at sight, marked "Drawn under Irrevocable Standby Letter of
Credit #718" accompanied by the following:
Beneficiary's written statement purportedly signed by its authorized
representative reading as follows: "The undersigned is authorized
to make the following statement on behalf of the City of Lubbock
("Beneficiary"). Beneficiary hereby certifies that an event of default
has occurred under the terms of that certain Unit Price Contract
(Contract No. 8403, BID 08-713-DD) Agreement dated May 13,
2008, as amended, between Beneficiary and Allen Butler
Construction, Inc.
2. This original Letter of Credit and any amendments thereto (if any).
In the event of a partial drawing the original Letter of Credit will be
endorsed and returned to you, unless the Letter of Credit has
expired or the amount available is reduced to zero.
Special Conditions:
1. Partial drawings are permitted under this Letter of Credit.
2. Other than Beneficiary's statement required above, the Issuer shall
require no further substantiation of the occurrence of such an event
TRUSTSERVICES - IRUSINW FINANCL#LSERVICES . PERSOIUAL FTIY.4NCIAL SI.,RVICIL - 0ATUNEBANKI G • LOANS - MORTGAGE
of default, consent of Applicant, or proof of the necessity of the
draw.
3. This Letter of Credit sets forth in full the terms of our undertaking
and such undertaking shall not in any way by modified, amended or
amplified by reference to any document, instrument or agreement
referred to herein or to which this Letter of Credit relates, and any
such reference shall not be deemed to incorporate herein by
reference any document, instrument or agreement.
4. Except as expressly stated herein, this undertaking is not subject to
any agreement, condition or qualification. The obligations of Issuer
under this Letter of Credit are the individual obligations of Issuer,
and are in no way contingent upon reimbursement with respect
thereto.
We hereby engage with you that documents drawn under and in compliance with
the terms of this Letter of Credit will be duly honored if presented for payment to
City Bank, 5219 City Bank Parkway, Lubbock, Texas 79407, Attention: David
Jones, prior to 4:00 pm on or before July 1, 2012.
This Letter of Credit is subject to and governed by the Uniform Customs and
Practice for Documentary credits of the International Chamber of Commerce
(Publication 600, 2007 Revision).
City Bank
By:
David Jones, 'EiecyKe Vice President